The 10-second takeaway
For the quarter ended June 30 (Q2), NuStar Energy crushed expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
NuStar Energy reported revenue of $1.90 billion. The seven analysts polled by S&P Capital IQ predicted sales of $1.30 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The nine earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS were -$3.49 for Q2 versus $1.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 5.5%, 610 basis points worse than the prior-year quarter. Operating margin was 1.9%, 550 basis points worse than the prior-year quarter. Net margin was -13.0%, 1,880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $5.77 billion. The average EPS estimate is $1.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 340 members out of 357 rating the stock outperform, and 17 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give NuStar Energy a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NuStar Energy is hold, with an average price target of $58.50.
How did NuStar Energy treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.
- Add NuStar Energy to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Solid Q2 Earnings Reinforce High Dividends for These 3 Oil Stocks
Despite different business models, all three companies should continue to deliver.
3 Key Takeaways From NuStar Energy's Q2 Earnings
The company continues to get results in a difficult environment.
NuStar GP Holdings, LLC's Earnings Are Unshaken
The midstream general partner maintains its distribution.